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Ethereum, Ripple's XRP, and litecoin, the three top cryptocurrencies by market capitalization alongside bitcoin, also all turned red, each losing between 5% and 10% in value over the last day, according to price data from CoinMarketCap.

The sudden bitcoin, ethereum, Ripple XRP, and litecoin price sell-off comes after warnings bitcoin is heading for a "violent breakdown" and technical data that showed a strong sign of buyer exhaustion across bitcoin and cryptocurrency markets.

"We fell off a cliff here, supported by the bottom of this descending triangle," said crypto analyst and BlockTV reporter Joe Saz. "I believe this descending triangle is going to be a violent breakdown. I don’t typically have a red flag emergency, but it’s looking very bad right now."

Technical bitcoin price data meanwhile showed a bear cross of short-term moving averages and weakening buy pressure yesterday, interpreted by some as a potential catalyst for a sharp price drop.

Elsewhere, the market was spooked on Sunday by a bitcoin trader allegedly placing a significant short order, betting that the bitcoin price would go down in coming days.

The bitcoin price took a turn for the worse after a multi-month winning streak.

CoinDesk

"The deep pullback last Wednesday night was like a bucket of ice water that was dumped on the anxious crypto market, which was indeed getting a bit too hot," Mati Greenspan, senior market analyst at brokerage eToro, wrote in a note to clients yesterday.

"The prospect of prices rising too far too fast had some traders feeling fearful, so it's good to see things relaxing somewhat."

Bitcoin last year went through a sharp correction after 2017's epic bull run which saw bitcoin prices go from under $1,000 per bitcoin to almost $20,000 in fewer than 12 months. Last year the bitcoin price fell to lows of around $3,000 per bitcoin.

I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported

…

I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com.
Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.